Countering The Mobile Threat

SPECIAL REPORT PHONECARDS

COUNTERING THE MOBILE THREAT

Despite the widespread adoption of the mobile and the doubling of callbox charges, phonecards are holding their own. By Ralph Adam At the end of August, British Telecom announced the doubling of charges from call boxes. According to ~Ialcolm -ewing, BT Payphones director, the hike came as result of increasing competition, particularly from pre-pay mobiles, and was intended to safeguard the pavphone service's futllre. "The mobile phone has completely changed the way people communicate away from home or office, and now payphones are used for only six per cent of those calls," said ~ewing. It's obvious - and natllral - that B1' perceives the mobile telephone market as a threat, yet these misgivings are colouring promoters' perceptions of the promotional phonecard as an effective mechanic. The contention centres partly on fears that the phenomenal take-up of mobiles over the past few years will make telephone-booth cards an irrele"ance. And, as mobiles carry an increasing range of functions such as \"oice-mail, internet access and e-eommerce capability, they are beginning to be perceived as a "must-have", spann ing all generations. Yet there is no evidence that the days of the phonecard arc numbered; on the contrary, a 1999 survey by the telecoms rcgulator, Of tel, into customer perceptions of competition in the international calling market, found 6.+ per cent awareness of phonecards. While mobile phones are seen as sexy, cards have become an everyday essential. The two can and do coexist, meeting different needs, and the general consensus is that phonecards provide convenience, and a perception of value. According to John Hart, sales manager at phonecard

manufacturer Nitecrest: "The phonecard market is going from strength to strength, not just here but also in the US, where volume is rising all the timc." Factors behind this increase in volume are largely practical phonecards can eliminate the need for eoi ns when abroad, overcome expensive hotel phone rates and they can even be used as an alternative to "roaming" charges for mobiles. Important marketing tool And according to Fred Parker, chief executive of Telecard lJK, BT's new charges are more than likely to backfire and will make phonecards even better val ue as a promotional tool. Certainly they have been an important marketing tool since the first promotional card, which advertised a Paris hotel, appeared in 1978. Since then, both the technology and design have improved greatly. There is now a wide range of added-value features vvhich can be incorporated into phonecards, and shape and visuals are limited only by the imagination. And, unlike many promotional items, a phonecard has a long life - the number of telephone minutes offered may be small (though too few minutes may not be a sufficient incentive), but the card itself is often collected and retained. If the branding is right, the card won't be thrown away and it will continue \vorki ng for years after its issue. Within this strong collector's market, thematic images becoming increasingly important. A copy of the aforementioned French card was recently auctioned for a four-figure sum, but

Phollecards Ji'OIJ7 Coca-Cola, have/store alld a licellsed Tom alld fen)' from BT (above); a GlIililiess utt Olltcard (be/Oill) this was based on its rarity and the ideaofitbeinga "first". In general, collectors prefer strong images and some themes seem to have unlimited interest: anything with a mention of Coca-Cola, for example. Other brands, such as Shell, also attract a lot of interest, as do pictures of planes, trains or birds of prey. \Vell-known licensed characters, such as those from Disney films, are also a major draw - one which BT was quick to capitalise on. And their use has become more innovative. Parker says Telecard l-K has I commissioned an artist to create special sets of phonecards with the theme Visions of Africa - one of the sets is a promotional souvenir for SPTl\. Teleeard lJK has also created several cards that promote more intimate forms of communication, such as cards for Labatt's Ice Beer whieb has messages such as "Please phone me, 1 may need warming up!" with space for the user to write his or her phone number before handing it over. And a I similar card was produced as a giveaway for the film Crt.Ie/ [lltelltio/ls. I Another company which has managed to merge the promotional, retail and collectors' markets is Excel Impact. The BBC has granted the ~ 70

SPECIAL REPORT PHONECARDS company its first-ever phonecard licence after signing a multi-year, panEuropean agreement. The company plans to bring out a series of six collectable cards featuring images from the BBC series Vola/kingwith Dinosaurs. Excel Impact has also created a promotion for Blockbuster and pizzaflavoured Pringles - which reinforces the link between snacks and movies. Interactive voice response

Another of Excel Impact's licensed cards, a Coca-Cola bottle with an IVR (interactive voice response) message which reproduces the sound of a can or bottle of Coke being opened, won this year's Phonecard of the Year award in Miami. Once a card has reached the collectors' market, it will change hands many times, giving a promotion extra impact. David Teasdale, Excel Impact's chairman says: "The combination of phonecards and licensed characters can prove irresistible when effectively deployed. But it goes without saying that you have to meet the client's promotional aims."

B T's new mrd, works in In some countries, designpayphones (top); cards for ers have allowed their Pring/es and Labatt Ice imagination free rein in creating cards. Lenticular (moving image) and 3-D designs are now par for the course, and cards with more than one application - key-rings, fridge magnets and necklaces, for example tries to overcome this problem. It is - are becoming popular. Perfumed, and even a remote-memory card with the edible, cards are currentnumbers held ly under test. __,..., on a chip, so it As well as fancy shapes, ~·-";lIIlt"""_ . _...•.•• ~..-IO'!_..,.nG!..... can eIther be sounds and smells, there ~-1\Ifl"'" llI"I'~_",••~ . are many technical features '::~~.::~_.used 10 the convensuch as interactive voice tional way from home or the office, or bridge technologies and be overs, auto-dial facilities (which give press-button access to a inserted into a BT payphone. client's customer services or sales Phonecards have become an everynumber), interactive games, prize day product with huge potential and promotions, and other forms of data those who see their value as a promocapture-led activities. Cards have also tional medium have a highly effective been used to activate pre-paid tool for brand-building and recognimobiles (giving the lie to the theory tion. The last word goes to Nitecrest's that mobiles will kill off phonecards) Hart: "Phonecards have an unlimited 0 and to drive users to specific websites. future: I can't see an end to it."